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France has published its official report on the financial crisis, and it’s much tougher than anything in America, according to Le Monde.The commission headed by socialist Henri Emmanuelli calls for an end to the “casino economy.” It recommends banning speculation that doesn’t entail risk, including credit default swaps and naked shorts, along with high frequency trades which are “impossible to control.”
The recommendations of Emmanuelli’s panel will go before the French national assembly. Although the recommendations won’t necessarily become law, the report is already more severe than anything found in America, whether Dodd-Frank or the aborted final report of our financial commission.
Emmanuelli told Le Monde he was “stunned by the magnitude of the financial bubble.”
He criticised the IMF and Central Banks for letting the sovereign debt crisis happen. “Report after report, they kept telling us that there was no danger as they watched the payroll and that therefore there was no inflation risk. But they forgot to tell us that liquidity since 2004, grew by about 15% per year. I think they have not fulfilled their role.”
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